The struggling Haggen supermarket chain is rapidly pulling out of its Southwest market and leaving a trail of layoffs in its wake.
The Bellingham-Washington-based grocer acquired 146 stores, including 83 California locations, earlier this year that previously operated as Vons or Albertsons. But business at many of the newly acquired stores languished and Haggen decided to re-emerge as a smaller business with 37 core stores and one stand-alone pharmacy in the Pacific Northwest.
Earlier this month that plan resulted in the layoff of 172 area employees, including 33 in Santa Clarita, 106 at two locations in Simi Valley and another 38 at a Haggen market in Newbury Park, according to figures from the state Employment Development Department.
Total California layoffs reached 620 this month, including additional stores in such communities as Chula Vista, Mission Viejo, Tustin, Bakersfield and Chula Vista, among others.
Last month the Federal Trade Commission approved an application by Albertsons to modify its contract with Haggen Holdings LLC.
The approval allows Albertsons to rehire employees of stores that Albertsons had transferred to Haggen without incurring “the risk of being accused of violating” its contract with Haggen.
Haggen’s realignment is part of a Chapter 11 reorganization plan to recover from a failed expansion that led to layoffs, store closures, lawsuits, a union grievance — and ultimately, a bankruptcy filing.
Gelsons and Smart & Final recently submitted bids to the bankruptcy court buy a total of 36 stores from Haggen.
